Trump Announces New Investors for TikTok’s US Operations
On March 10, 2024, President Donald Trump revealed that prominent figures from the tech and media sectors will be involved in the acquisition of TikTok’s US operations. The group includes Larry Ellison, CEO of Oracle, Michael Dell, founder of Dell Technologies, and media executives Lachlan Murdoch and Rupert Murdoch.
During an interview on Fox News’ “Sunday Briefing,” Trump expressed confidence in the individuals involved, stating, “You know, they’re very well-known people. And Larry Ellison is one of them. He’s involved. He’s a great guy. Michael Dell is involved.” He further mentioned that Lachlan Murdoch, who serves as CEO of Fox Corp., and his father, Rupert Murdoch, are likely to join the consortium.
Details of the Acquisition
The involvement of the Murdochs could indicate that Fox Corp. may become part of a larger group focused on TikTok’s algorithm. According to a source familiar with the situation, neither Rupert nor Lachlan Murdoch would be investing as individuals. This participation could enhance Fox Corp.’s portfolio, which has been actively pursuing digital media investments to counterbalance declines in traditional broadcast television revenue.
Trump’s announcement marks a shift from previous statements regarding the consortium’s composition. Earlier, the Trump administration identified investors such as Ellison’s Oracle, along with Silver Lake, a private equity firm, and Andreessen Horowitz, a venture capital firm, as key players in the TikTok deal.
In accordance with a bill passed by Congress in April 2024, TikTok is mandated to have a board consisting of seven members, with six being American. Karoline Leavitt, White House press secretary, confirmed that Oracle will lead data and privacy efforts for TikTok in the United States, following a partnership that began in 2020 when Oracle started hosting the app’s US data.
International Negotiations and Future Steps
On March 8, 2024, Trump also shared that he had a productive discussion with Chinese President Xi Jinping, noting that “progress was made toward finalizing the deal.” This announcement comes as both nations navigate the complexities of commerce and data privacy concerning TikTok, which has faced scrutiny over its Chinese ownership and the potential risks associated with user data.
The ongoing negotiations reflect broader tensions in US-China relations, particularly concerning technology and data security. As the acquisition process unfolds, the involvement of established business leaders like Ellison and Dell may play a critical role in shaping the future of TikTok in the United States.
As the situation develops, stakeholders across the tech and media sectors will be closely monitoring the implications of this acquisition, particularly regarding how it may influence the landscape of social media in America.
